My personal opinion is that all the talk about tornados and chasms and bowling pins misses the point that Cree, for whatever it's worth, is the gorilla of silicon carbide.
i agree with you regarding cree being the gorilla of SiC (95% market share)...and i do believe that cree long term is going to be just fine for the reason that SiC has such important characteristics.
in the meantime....i see the economy continuing to weaken, the nasdaq slide, the sox troubles, cree with current declining revenues and backing off the forecast for sequential earnings growth, increasing yields, and margin stability.
for over a year, i have been moving away from chasing capital gains and into yield producing investments. i continued to support cree in a large way because i believed the recession-proof story.
in an environment of slowing adevertising spending, who is going to build big, expensive, new signs.
all of my friends and family own late model cars and cell phones...with no new killer app and a sliding economy nobody is in a hurry to upgrade anything.
cash looks good to me right now. i can wait for clearer vision. |
